Free advice/discussion on buy/sell of Resale flat (Part 5)

vinz

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Sorry to hijack, but I've read that due to the bad market situation, some people have managed to drag this longer via appeal, is that true?
Yes when its bad market situation, like selling 30k below HDB valuation and yet there are no buyers. Now is not consider a bad market situation.

Also, can the flat be rented out during this period since it'll be vacant and must've passed the 5 yrs occupancy period?
You are suppose to SELL the flat asap, not rent it out and earn rental income for your info. I do not think HDB will allow you to rent out either flat.
 

vinz

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let say i am buying a 4rm resale with my gf. our cpf and housing grant is enough to pay for the 10% downpayment and misc fees. so we dun have to top up any cash during the resale process except the COV and some admin fees+valuation report.

if we have 20k spare cash on hand, can we like pay hdb upfront during the resale process to offset the remaining loan amount? e.g. remaining loan 250k to be paid in 30years, can we pay hdb 20k cash so that the remaining loan becomes 230k to be paid in 30 years instead?

thanks
Yes of course you can.
But I think every one is trying to have Cash on hand rather than pay off another 20k for the HDB loan (around $80 per month for a 20k loan). It's the lowest interests rate around, maybe you can use this money for other investment or opportunity.
 

vinz

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If within 6mths we still cant sell our flat, what will happen?

Quite tired of the selling flat process and so far those people that came to view dont really seem sincere, they're like just to see see look look. So far the people that came to view my flat are mainly those PRs.....

I thought if HDB buy back would be like probably 30-40k lower than open resale market? Anyway, just thinking of contingency plan if cant sell to anyone in open market, dont mind considering selling back to HDB if its like 10% lower than open market. Save the hassle and HDB confirn got $ to pay. :p
If you selling 30-40k lower than resale market, i am sure lots of people will grab your unit.

Usually reason a flat cant be sold off is because of the price, are you sure you had price your home at a reasonable amount?

anyway i have never heard of HDB buying back any flat, or anyone doing so (unless maybe the owner is bankrupt etc)
 

vinz

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i'm also curious about this as well.

1) So can i assume that 90% (or less) HLE will confirm be granted for first-timer as long as 40% monthly household income is enough to pay for monthly instalment x 30 years?
In theory it's correct, why dont you just proceed to do the HLE to confirm.


2) Another question is that if the flat i'm getting costs 380K valuation and 400K selling price, roughly how much cash do I have to fork out for the valuation+stamp fees+other fees if our CPF+grant is more than enough for 10% + COV? We are thinking to apply HLE.
20k cash for the cov.
valuation report $180.50 cash only
stamp fees (for purchase of 400k home) is $6,600 cpf or cash
Agent fees is 4k + GST, cash only
Legal and caveat fees around 500, cpf or cash

I think I had repeat all these above quite a few times in this forum.
Please do a search.
 

vinz

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Hi Vinz,
There are some questions that I would like to clarify and hope that you can clear my doubts. I'm planning to buy a resale flat near my parents;

1) 1st Timer Housing Grant living near parents => $40K
I'm a Singapore Citizen and my spouse is a Singapore PR. Are we eligible for the full $40K or only Half Housing Grant =>$20K (which my agent had mention to me).
Singapore + PR eligible for 40k grant, didnt your agent know that?

2)AHG => $35K
As my spouse is a SPR, I will be only eligible for half of $35K => 17.5K. Correct?
As long as combined income is not more than 5k monthly, than you be eligible for the full AHG (according to your income bracket) , no such thing as half AHG.
3) Let say I buy a resale flat selling at valuation 230K (COV $0), how much cash I have to fork out with. I have done my HLE => $185K. CPF of $40k.
Cash for deposit (max 5k), the rest you can pay from your existing CPF and your grant, plus HLE.

a) Exercise OTP + OTP = Deposit =>$1K + 4K (Cash) Will this be return to me as the COV is $0?
Will not be return to you, it will be use to offset the loan amount, so of course try to bargain as low cash deposit as possible.

b) 10% Downpayment => All 10% can be paid by CPF?? (My agent mention 5% to be pay by cash)
If you done HLE means you eligible for HDB loan, so all amount can be paid using CPF . I think your agent don't really know much about HDB rules.
c) Valuation Report => $171++ (Cash)
Yes. $180.50
d) Stamp fee etc. (CPF)
Yes
e) Agent 's commission =>cash (1% + 7% GST =>$2461)
Yes
f) others???
Didn't your agent help you to do a financial plan before you even commit to the purchase? Prepare around $500 - $1,000 as misc fees (legal fees, caveat fees , property tax fees etc).
 

vinz

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I will be serving the NATION starting from tomorrow, for the next few weeks.
Pardon me if I can only reply you during the weekends or a few weeks later.

Cheers.
 

ronski

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Singapore + PR eligible for 40k grant, didnt your agent know that?

As long as combined income is not more than 5k monthly, than you be eligible for the full AHG (according to your income bracket) , no such thing as half AHG. Cash for deposit (max 5k), the rest you can pay from your existing CPF and your grant, plus HLE.

Will not be return to you, it will be use to offset the loan amount, so of course try to bargain as low cash deposit as possible.

If you done HLE means you eligible for HDB loan, so all amount can be paid using CPF . I think your agent don't really know much about HDB rules.
Yes. $180.50
Yes
Yes
Didn't your agent help you to do a financial plan before you even commit to the purchase? Prepare around $500 - $1,000 as misc fees (legal fees, caveat fees , property tax fees etc).

Thanks for your time to reply my questions. Its either a miscommunication with my agent or he really doesnt know much.
Regarding the AHG, I was rather confused by agent when he mention half grant as my spouse is a Singapore PR. However below was quoted from the HDB website:
Disbursement of Grant
ecblank.gif

The AHG is given to Singapore Citizen only (not Singapore Permanent Resident spouse or an undischarged bankrupt). The grant once disbursed cannot be ret
urned unilaterally by the recipients.
http://www.hdb.gov.sg/fi10/fi10201p...OpenDocument&SubMenu=CPF_Housing_Grant_Scheme

So I assume its full HG and Half AHG for my case.

Thank you again for your time.
Enjoy your ICT :D
 

alamak

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Yes of course you can.
But I think every one is trying to have Cash on hand rather than pay off another 20k for the HDB loan (around $80 per month for a 20k loan). It's the lowest interests rate around, maybe you can use this money for other investment or opportunity.

thanks, vinz. just finding out whether it's possible and then will consider how to best make use of this money.

thank again, you've been a great help.
 

timelf

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In theory it's correct, why dont you just proceed to do the HLE to confirm.

Thanks vinz.

If I only intend to buy the house at end of year, can I still apply for HLE now to test/confirm and then apply another when I'm going to buy at end of year?

Thanks.
 

davyan

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The AHG is given to Singapore Citizen only (not Singapore Permanent Resident spouse or an undischarged bankrupt). The grant once disbursed cannot be ret[/COLOR]urned unilaterally by the recipients.
http://www.hdb.gov.sg/fi10/fi10201p...OpenDocument&SubMenu=CPF_Housing_Grant_Scheme

So I assume its full HG and Half AHG for my case.
a month ago me too was confused by that statement and Vinz answered for me. Hope i can help abit here. What it actually means is that:

example
eligible AHG: 30k
scenario 1: both citizen: 15k goes into your cpf account and another half goes into your spouse's cpf account
scenario 2: else if only you are citizen: 30k will all go into your cpf account
 

ronski

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a month ago me too was confused by that statement and Vinz answered for me. Hope i can help abit here. What it actually means is that:

example
eligible AHG: 30k
scenario 1: both citizen: 15k goes into your cpf account and another half goes into your spouse's cpf account
scenario 2: else if only you are citizen: 30k will all go into your cpf account

Million thanks for the clarification!. Now I clearly understand what that statement means.
 

ziggyy

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Hi Vinz,

I’ve been looking around the paper and the various online databases, had some viewings and saw one last week which we think is suitable. Going to call the agent who brought us there to arrange for a 2nd viewing.

A few questions if you can help.

1. What should I look out for during this 2nd viewing? Unit was vacant when we visited, so some key things we’ll note are the sizes of the MBR & kitchen (is it ok if we take measurements??) and sun facing (was raining that day). Any tips or things we should take note?

2. We called this agent cos he advertised for another unit at the same block 2 weeks ago, and last weekend, he said there’s something similar and asked if we are interested. Does this mean that we have to pay the full 1% if asked or .5% like some other agents have asked before for doing the paperwork?

3. 5 room flat, going to try to press for $30k below valuation, seller first pricing is already $15k below, feasible? Agar agar, he/she has 4 months more to sell since they bought another HDB. Full renovation needed as the condition not very fantastic. Even at $30k below valuation, its still slightly above our budget but factoring the location, top up a little still can. Also factoring in the agent fees + stamp & other payments, it’ll be $20k above our budget…

4. Possibly a dumb qns but so what’s next, assuming after 2nd viewing, we are interested, what should I do?

Thanks.
 

monkeyinc

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Hi Vinz,

I’ve been looking around the paper and the various online databases, had some viewings and saw one last week which we think is suitable. Going to call the agent who brought us there to arrange for a 2nd viewing.

A few questions if you can help.

1. What should I look out for during this 2nd viewing? Unit was vacant when we visited, so some key things we’ll note are the sizes of the MBR & kitchen (is it ok if we take measurements??) and sun facing (was raining that day). Any tips or things we should take note?

2. We called this agent cos he advertised for another unit at the same block 2 weeks ago, and last weekend, he said there’s something similar and asked if we are interested. Does this mean that we have to pay the full 1% if asked or .5% like some other agents have asked before for doing the paperwork?

3. 5 room flat, going to try to press for $30k below valuation, seller first pricing is already $15k below, feasible? Agar agar, he/she has 4 months more to sell since they bought another HDB. Full renovation needed as the condition not very fantastic. Even at $30k below valuation, its still slightly above our budget but factoring the location, top up a little still can. Also factoring in the agent fees + stamp & other payments, it’ll be $20k above our budget…

4. Possibly a dumb qns but so what’s next, assuming after 2nd viewing, we are interested, what should I do?

Thanks.

Probably you need to take note on:

- upgrading fee paid?
- neighbor. Are they decent or XXXX...
- ownership of the house.
- some fengshui issue such as main door cannot face direct to income traffic road.
- if top floor then check out the water tank placement.

However I would advise you to do your calculation carefully. Legal and stamp will cost a bomb, unless u got plenty in your CPF. Meanwhile try to nego with agent to lower down the fee to 0.5%.

The only bank can get loan up to 90% is DBS.
 

chipmunk

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Hi Vinz,

I’ve been looking around the paper and the various online databases, had some viewings and saw one last week which we think is suitable. Going to call the agent who brought us there to arrange for a 2nd viewing.

A few questions if you can help.

1. What should I look out for during this 2nd viewing? Unit was vacant when we visited, so some key things we’ll note are the sizes of the MBR & kitchen (is it ok if we take measurements??) and sun facing (was raining that day). Any tips or things we should take note?

2. We called this agent cos he advertised for another unit at the same block 2 weeks ago, and last weekend, he said there’s something similar and asked if we are interested. Does this mean that we have to pay the full 1% if asked or .5% like some other agents have asked before for doing the paperwork?

3. 5 room flat, going to try to press for $30k below valuation, seller first pricing is already $15k below, feasible? Agar agar, he/she has 4 months more to sell since they bought another HDB. Full renovation needed as the condition not very fantastic. Even at $30k below valuation, its still slightly above our budget but factoring the location, top up a little still can. Also factoring in the agent fees + stamp & other payments, it’ll be $20k above our budget…

4. Possibly a dumb qns but so what’s next, assuming after 2nd viewing, we are interested, what should I do?

Thanks.


Mind revealing which area is that? Good to hear that flats are selling below valuation :D
 

vinz

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Thanks vinz.

If I only intend to buy the house at end of year, can I still apply for HLE now to test/confirm and then apply another when I'm going to buy at end of year?

Thanks.
Yes you can, please go ahead to do it , anyway it cost you nothing but some time.
 

vinz

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1. What should I look out for during this 2nd viewing? Unit was vacant when we visited, so some key things we’ll note are the sizes of the MBR & kitchen (is it ok if we take measurements??) and sun facing (was raining that day). Any tips or things we should take note?
Do you mind the afternoon sun, if not then its ok.
Some people don't mind, some do, its all up to the individual.

Taking measurement for? Usually all these will be done only after a buyer confirm buying the place. of course i think most owners wouldnt mind you taking measurement, it means you love the unit very miuch and is planning on what to do with the interior decor etc..


2. We called this agent cos he advertised for another unit at the same block 2 weeks ago, and last weekend, he said there’s something similar and asked if we are interested. Does this mean that we have to pay the full 1% if asked or .5% like some other agents have asked before for doing the paperwork?
Usually its 1%, unless the 2nd unit is also his exclusive (he represent the seller), then maybe you can nego alittle with him/her.

3. 5 room flat, going to try to press for $30k below valuation, seller first pricing is already $15k below, feasible? Agar agar, he/she has 4 months more to sell since they bought another HDB.
30k below? I think maybe 5k lesser is more reasonable, but of course you can go ahead and make an offer of 30k, most likely they will come back with a price nearer to 20k below valuation for you to decide.

They can appeal for a longer time if they cant get a reasonable price.

4. Possibly a dumb qns but so what’s next, assuming after 2nd viewing, we are interested, what should I do?
Sign the option to purchase, pay a cash deposit (max 5k cash), then get your loan settle (HLE or Bank Letter of offer), then confirm the purchase by exercising (signing again on page 8 of contract) within two weeks.

Then can request for a 1st appt and prepare to go to HDB.

My advise is to get your financial plan work out properly 1st before you sign on anything.
The agent representing you should be able to advise you accordingly.
 

LightBuzz

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Hi Vinz,

Is it true that 30k for first timer are only for resales flats, will there be any grant for direct buy from HDB?

Thanks
 

Navanod

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Hi Vinz,

Is it true that 30k for first timer are only for resales flats, will there be any grant for direct buy from HDB?

Thanks

Not Vinz here but I think I can help

Direct purchase from HDB is not eligible for any CPF grant (that 30K you mentioned) as flats direct from HDB are "heavily subsidized" and supposedly already cheaper than a resale flat of the same size/type in the same area.
 
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